The Ministry of Construction has just announced information on housing and real estate market in the third quarter of 2024. Accordingly, in the survey and summary report of some major provinces and cities such as Hanoi and Ho Chi Minh City, apartment prices in Hanoi continue to increase in both new and old projects, the price level of new projects has increased by about (4% to 6%) quarterly and (22% to 25%) annually.
The reason for the recent increase in real estate prices is largely due to a number of factors such as the increase in land-related costs, especially in some localities; affordable housing products are not enough to meet market demand. In addition, the phenomenon of "creating virtual prices", "inflating prices" by speculators and individuals working as real estate brokers; taking advantage of people's lack of knowledge, investing according to the crowd psychology to make profits.
Accordingly, the general selling price has increased, especially in some areas, increasing locally by about 35% to 40% depending on the location compared to the previous quarter.
In the market segment of affordable apartments (with selling price under 25 million VND/m2), there are almost no transactions and products for sale. In addition, mid-range apartments (with prices from about 25 million VND/m2 to under 50 million VND/m2) still have a high level of transactions and supply in the market, the remaining order is luxury and super luxury apartments (with prices over 50 million VND/m2).
According to a survey of some projects in Hanoi, apartments of Vinhomes Ocean Park project in The Zurich subdivision are priced at about 46 - 55 million VND/m2 in Trung Hoa Ward, Cau Giay. Lumi Prestige project is priced from 69 million VND/m2 in Tay Mo Ward, Nam Tu Liem District. The Ninety Complex project is priced at about 60 - 75 million VND/m2 in Dong Da District.
The Sapphire - Vinhomes Smart City project costs about 47 - 61 million VND/m2 in Nam Tu Liem district. The 107 Nguyen Tuan Viha Complex residential project costs about 75 - 97.2 million VND/m2 in Thanh Xuan district.
High-rise housing projects, green trees and parking lots on plots of land marked HH4, HH5, CL2, CL3, CX and P1 of Khai Son City project in Ngoc Thuy ward, Thuong Thanh, Long Bien have prices ranging from 50 - 68 million VND/m2.
Mr. Tran Quang Trung - Business Development Director of OneHousing commented that waiting for housing prices to decrease is not feasible. Because currently all input factors of project development enterprises such as land tax costs according to the new price list, construction costs, investment in product design... are all increasing significantly.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association said that if Hanoi apartments and other residential real estate segments continue to increase in price and there are no early intervention measures, in the long term it will cause great instability for the market and society.
Mr. Dinh recommended that management agencies should soon take measures to "clear" the way for the affordable commercial housing and social housing segments. Along with that, investors need to step up research and product development in line with trends and affordability of the majority of people, limiting the large phase difference to high-end and luxury products.
